Following desk audit results, the state revenue department issued a tax violation notice for 27.4 million tenge. The basis was a court ruling recognizing transactions between the company and a liquidated counterparty for 2019-2020 as invalid. The tax authority demanded exclusion from VAT deductions and corporate income tax expenses of amounts under contracts recognized as invalid, citing violations in tax accounting.
The specialized inter-district administrative court recognized the notice as unlawful and completely cancelled it. The court established that the department exceeded the statute of limitations when issuing the notice: for tax periods of Q3-Q4 2019, the deadline expired in September-December 2022, and for Q1-Q2 2020 - in March-June 2023. The notice was issued on August 8, 2023, i.e., after the expiration of the three-year statute of limitations for all disputed periods.
The decision is based on violation of the principle of legality and exceeding administrative discretion. The court emphasized that desk audit should be carried out within the statute of limitations according to tax legislation. This case demonstrates the importance of compliance with procedural deadlines by tax authorities and the possibility of successful defense of taxpayers' rights even in the presence of court decisions on the invalidity of transactions, if the tax authority acts in violation of the time frames established by law.
